Rule 497(e)
                                                             File Nos. 333-70963
                                                                   and 811-09201

                         Key Business VUL -- Prospectus

           A Flexible Premium Variable Universal Life Insurance Policy
             offered by Great-West Life & Annuity Insurance Company
                in connection with its COLI VUL-2 Series Account


                     Supplement effective August 29, 2000 to
                           the May 1, 2000 Prospectus


On Page 21 of the  prospectus,  under the  heading  "Charges  and  Deductions  -
Expense  Charges  Applied to Premium,"  please delete the third paragraph in its
entirety and replace with the following:

Where permitted by applicable state insurance law, if your Policy is surrendered
for the Surrender  Benefit (Account Value less any outstanding  Policy Loans and
less accrued loan interest)  within the first six Policy Years, we will return a
percentage  of the  Expense  Charge.  The  Return of  Expense  Charge  will be a
percentage of your Policy's Account Value on the date the surrender  Request was
received by us at our Principal  Office.  This amount will be in addition to the
Surrender Benefit.

The Return of Expense Charge is based on the following:

                                    Percent of Account Value
          Policy Year                    Returned
          Year 1                            6%
          Year 2                            5%
          Year 3                            4%
          Year 4                            3%
          Year 5                            2%
          Year 6                            1%
          Year 7+                           0%

The Return of Expense Charge is not available if the Policy is surrendered under
the terms of Section 1035 of the Code.


On Page 33 of the prospectus,  under the heading  "Distribution  of the Policy,"
please  delete  the  first  paragraph  in its  entirety  and  replace  with  the
following:

Licensed  insurance agents will sell the Policy in those states where the Policy
may be  lawfully  sold.  Such  agents  will  be  registered  representatives  of
broker-dealers  registered  under the  Securities  Exchange  Act of 1934 who are
members of the National  Association  of Securities  Dealers,  Inc. and who have
entered  into  selling  agreements  with our general  distributor,  BenefitsCorp
Equities,  Inc.  ("BCE").  BCE, whose  principal  business  address is 8515 East
Orchard Road, Englewood, Colorado 80111, is an indirect, wholly-owned subsidiary
of Great-West  and is registered  with the  Securities  and Exchange  Commission
under the Securities  Exchange Act of 1934 as  broker-dealer  and is a member of
the  National  Association  of  Securities  Dealers,  Inc.  BCE also acts as the
general distributor of certain annuity contracts issued by us. The maximum sales
commission payable to our agents,  independent  registered  insurance agents and
other  registered  broker-dealers  is 40% of the first year target  premium.  In
addition,  asset-based trail commissions may be paid. A sales representative may
be required to return all or a portion of the commissions  paid if: (i) a Policy
terminates  prior  to  the  second  Policy  Anniversary;  or  (ii) a  Policy  is
surrendered  for the  Surrender  Benefit  within the first six Policy  Years and
applicable state insurance law permits a Return of Expense Charge.